Incitec Pivot has posted a 27 per cent fall in profit, with the explosives and fertiliser maker blaming reduced demand from the mining sector and the strong Australian dollar for the slump.
The company’s net profit fell by almost a third to $372 million, compared to $510.7 million in 2012.
'There's no doubt that 2013 was a challenging year, and the result reflects that,' Incitec chief executive James Fazzino said.
Fazzino said the company had been affected by a strong local currency and a drop in the demand for explosives from the mining industry, SMH reported.
“In the face of these external challenges, the business delivered strong operating cash flows and increases in underlying earnings in the global explosives business,’’ he said.
The company said its explosives business was impacted by difficult global market conditions for hard commodities as well as the downturn in the coal sector.
Fazzino said the company remained cautious about the outlook for next financial year, saying it did not expect a huge improvement in its explosive markets.
However it said that Incitec would benefit from increased production at its ammonium nitrate plant at Moranbah, in central Queensland, during 2014.
The company said it will aim to improve productivity and cut costs across its business.